DEFENSE LOGISTICS AGENCY

 HEADQUARTERS

 8725 JOHN J. KINGMAN ROAD

 FORT BELVOIR, VIRGINIA 22060-6221

April 11, 2016

MEMORANDUM FOR FINANCE PROCESSS REVIEW COMMITTEES (PRCs) 

SUBJECT: Approved Defense Logistics Management Standards (DLMS) Change (ADC) 1204,

Notification Procedures for Mass Billing Errors (Finance)

The attached change to DLM 4000.25, Defense Logistics Management Standards, is 

approved for immediate implementation.

Addressees may direct questions to Mr. Robert Hammond, Chair, Finance PRC, email 

DLMSO Finance (financehq@dla.mil), phone: 703-767-2117. [Note that migration of the DLA 

email alias for the Finance PRC email address (now DLMSO Finance) has resulted in some 

emails being rejected. This is often fixed by clearing out an auto-fill of the email address when 

crafting a new email and starting anew.] Others must contact their Component/Agency 

designated representative shown at https://www2.dla.mil/j6/dlmso/CertAccess/SvcPointsPOC/allpoc.asp (DOD Common Access Card restricted).

 

DONALD C. PIPP

Director

Defense Logistics Management 

Standards Office

Attachment

As stated 

cc: 

ODASD (SCI)

OUSD(C)
Attachment to ADC 1204

Page 1

Attachment to ADC 1204

Notification Procedures for Mass Billing Errors

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION:

a. Technical POC: Defense Logistics Management Standards Office (DLMSO)

b. Functional POC: Robert Hammond, Chair, Finance PRC, email financehq@dla.mil

2. FUNCTIONAL AREA: Finance

3. REFERENCE: DLM 4000.25, Defense Logistics Management Standards, Volume 4, 

Military Standard Billing System (MILSBILLS) – Finance

4. REQUESTED CHANGE(S):

a. Brief Overview of Change: This change to MILSBILLS procedures (see reference) 

provides procedures for billing offices to notify their FPRC representatives of significant or mass 

billing errors, who in turn will assist in coordination with appropriate Component FPRC

representatives and the FPRC Chair.

b. Background: In 2015, there were three known instances of significant or mass 

billing errors. While those instances were resolved in a timely manner, MILSBILLS currently 

lacks procedures for coordinating with applicable Component FPRC representatives and the 

FPRC Chairman.

c. Procedures, Transactions, Data Elements, Processing Details in Use Today:

Notification procedures regarding correction of significant or mass billing errors are at the 

discretion of billing office staff, who may not know whom to contact, or the intricacies of 

customer financial systems and processes.

d. Approved Change in Detail: Incorporate into MILSBILLS the procedures for 

notifying applicable Finance PRC Component representatives and the FPRC Chair regarding

instances of significant or mass billing errors.

e. Revisions to DLM 4000.25 Manuals: Add to DLM 4000.25, Volume 4, Chapter 2, 

Billing Procedures the revisions highlighted in red, bold italics below:

“C2.4. CORRECTION OF ERRONEOUS BILLINGS 

C2.4.1. Billing Forwarded To Customer. When a billing office finds it has issued an 

invoice containing one or more erroneous billing lines, it will correct the erroneous billing line in 

a later invoice. Normally, billing offices are expected to reverse and reissue only the erroneous 

billing line, not the entire invoice. The corrections will be processed as soon as practical and 

will not await customer requests for adjustments. 
Attachment to ADC 1204

Page 2

C2.4.2. Billing Rejected By Transaction Services. Billings rejected by Transaction 

Services must be corrected and resubmitted to obtain reimbursement. Corrective procedures will 

include preserving the accounting records along with records of causative research to maintain 

the audit trail and the validity of the records. For example, in-transit interfund collections and paid 

accounts receivables related to the rejected bills will have to be reversed.

“C2.4.3. Notifications. Billing offices will advise their Finance PRC representative of 

significant or mass billing errors and their planned corrections. Finance PRC representatives 

will assist in coordinating with billed offices and will apprise the impacted primary/alternate 

PRC members of the situation via e-mail. Notify the PRC Chair simultaneously at DLMSO 

Finance (financehq@dla.mil). Note that some financial systems may reject bills resubmitted 

with the same billing number.”

f. Alternatives: None.

5. REASON FOR CHANGE: Incorporates procedures into MILSBILLS for notification and 

coordination in instances of significant or mass billing errors.

6. ADVANTAGES AND DISADVANTAGES:

a. Advantages: Provides billing offices with notification procedures in instances of 

significant or mass billing errors. Facilitates coordination for prompt resolution to mitigate 

potential significant impact on Component missions as the result of incorrect financial account 

balances. Provides visibility at the appropriate level for addressing potential process or systems 

deficiencies. 

b. Disadvantages: None noted.

7. ESTIMATED TIME LINE/IMPLEMENTATION TARGET: Immediately.

8. ESTIMATED SAVINGS/COST AVOIDANCE ASSOCIATED WITH 

IMPLEMENTATION OF THIS CHANGE: Unknown. 

9. IMPACT:

a. DLMS Data Elements: None.

b. Automated Information Systems (AIS): None.

c. Transaction Services: None.

d. DLMS Training: This change will be incorporated into Module 10, DLMS Financial 

Transaction Supplement and into future FPRC training sessions.